HR 2225

112th CONGRESS
1st Session

H. R. 2225

To amend the Investment Advisers Act of 1940 to add a definition of family office.

IN THE HOUSE OF REPRESENTATIVES

June 16, 2011

Mr. HENSARLING (for himself, Mr. BACHUS, Mrs. MALONEY, Mr. GARRETT, Mr. NEUGEBAUER, Mrs. CAPITO, and Mrs. BIGGERT) introduced the following bill; which was referred to the Committee on Financial Services


A BILL

To amend the Investment Advisers Act of 1940 to add a definition of family office.

SECTION 1. FINDINGS.

SEC. 2. FAMILY OFFICE DEFINITION.

`(aa) such entity is majority-owned or controlled, directly or indirectly, by, or operated primarily for the benefit of, one or more family clients;

`(bb) the family office is giving investment advice to such entity; and

`(cc) persons who are not otherwise defined as a family client do not own interests in such entity.

`(aa) Any natural person whose economic activities created or substantially contributed to the family's wealth, and such person's spouse.

`(bb) The siblings, parents, grandparents of a person described in item (aa).

`(cc) The spouse of a person described in item (bb).

`(dd) The siblings of a person described in item (bb) or (cc).

`(ee) The spouse of a person described in item (dd).

`(ff) The lineal descendant of a person described in item (bb), (cc), (dd), or (ee).

`(gg) The spouse of a person described in item (ff).

`(aa) the term `lineal descendant' includes natural children, adopted children, and stepchildren;

`(bb) the term `spouse' includes spousal equivalents; and

`(cc) the terms `siblings', `parents', and `grandparents' include step-siblings, step-parents, and step-grandparents, respectively.

END